| The issue of security has always been much debated | | | | Even if the mail reads that it is from your brokerage |
| when it comes to online trading. Till recently many | | | | firm, don't part with your log-in details. If in doubt call |
| would dread to even buy a ticket to a film through | | | | their customer support. They already have your |
| the internet, let alone trade on the markets using the | | | | details and they will never ask you for the same |
| facilities that internet offers. And to an extent such | | | | over email. Change your password regularly. And try |
| reservations were justified. | | | | to use all sorts of character to make is secure. |
| The internet is a place where everyone is connected | | | | Log-off the website after you are through with your |
| to everyone, one way or another. And if someone is | | | | transaction. |
| really smart enough he can exploit the weaknesses | | | | These are some of the basic rules that you need to |
| of various sites and cause a lot of damage to the | | | | stick to so that all your internet trades and |
| members of that site. Of course he can also hack | | | | transactions are safe and secure. This requires little |
| into others' computers. And these things have | | | | effort, especially if you think about the losses you |
| happened earlier. | | | | might endure otherwise. |
| But today, the internet is a much secure place than | | | | While concerns about online security will always be |
| what it was, say five years back. The security has | | | | there, rest assured that the brokerages themselves |
| been beefed up and it is much more robust and less | | | | have a very, very high stake in making you feel |
| susceptible to attacks from hackers and spammers. | | | | comfortable about the level of security being used. All |
| Of course the internet companies have pumped in | | | | online brokerages have a portion of their website |
| truckloads of dollars into their research and | | | | devoted to explaining the measures they employ to |
| development to attain such security. And now the | | | | protect your transactions. While it may be true in this |
| results are there to see. | | | | world that nothing is perfectly safe, online trading is |
| But as online trading get increasingly easy many | | | | certainly as close as off line trading in providing |
| investors drop their guard. That is criminal. You just | | | | safety in your financial transactions. |
| cannot take it easy on the net. There are a few | | | | If you are making securities transactions that take |
| simple things you should practice while investing on | | | | place over the Internet, make sure that your |
| the net. Always have all you transactions confirmed | | | | brokerage is using high-end encryption. Encryption is |
| by your online brokerage firm. Never trade from | | | | the process developed by super-genius computer |
| unprotected computers. So you shouldn't be trading | | | | nerds -- but, you know, the good kind -- to scramble |
| from office or library or a cyber cafe. | | | | data so that only the intended receiver can use it. |
| Regularly update the security features of the | | | | The higher the number of bits in an algorithm, the |
| software of your computer. The most important | | | | more sophisticated the encryption. (Repeat this last |
| software that you need to update are your internet | | | | sentence three times, memorize it, and use it liberally |
| browser, the firewall and the anti-virus software. Only | | | | in cocktail party conversations, particularly a |
| open emails form a secure source. Never click on | | | | conversation you wish to end.) A 128-bit algorithm is |
| mails that you are doubtful about. | | | | the encryption level used by most online brokerages. |
| Never provide your account information to anyone. | | | | |